Murugappa Group on December 28 signed a definitive agreement for settlement of lender dues, restructuring of funded facilities and guaranteed debt of CG Power.
The Tube Investment of India in its regulatory filing mentioned that pursuant to the terms and conditions of the agreement, CG Power's resolution of outstanding obligation towards its lenders, in accordance with the terms set out in Reserve Bank of India (Prudential Framework for Stressed Asset) Directions, 2019, has been completed by payment of the upfront consideration of Rs 650 crore to the Lenders as compromise settlement.
CG Power lenders agree for loan restructuring, pave way for Murugappa takeover
Earlier on November 21, TIIL had informed the stock exchanges about the execution of requisite binding agreements including Master Implementation Cum Compromise Settlement Agreement dated November 20, 2020, by CG Power, the Company and the lenders of CG Power for one time settlement and restructuring of funded facilities and guaranteed debt of CG Power.
The Murugappa Group also stated that recognition of debt of Rs 150 crores in the books of CG Power against the CG House property has been completed. While added that unrated, unsecured, unlisted, non-convertible debentures for an aggregate amount of Rs 200 Crores to the Lenders having a tenure of 5 years have been issued too.
Earlier in August TIIL had agreed to invest Rs 700 crore in CG Power for a 56.61 percent stake. Recently, TIIL received the Competition Commission of India's (CCI) nod to acquire CG Power. In five-years CG Power will be debt-free.
The scam-hit equipment maker (CG Power) had total debt of Rs 2,161 crore, out of which a consortium of 14 banks have taken a haircut of Rs 1,100 crore and restructured the remaining.
